Final answer:
The statement about Theory X is true, as it posits that the average person lacks ambition, avoids responsibility, and prefers to be led, contrasting with Theory Y which views employees as self-motivated and responsible.
Step-by-step explanation:
True, Theory X is indeed based on the premise that the average person has little ambition, avoids responsibility, and generally prefers to be led. This management theory assumes that employees are inherently lazy and that they must be coerced, controlled, and threatened with punishments to get them to work effectively. On the other hand, Theory Y posits that individuals are self-motivated and thrive on responsibility, and it suggests a more participative management style. According to Theory Y, employees will exercise self-direction and control towards achieving objectives to which they are committed. Therefore, the assertion about Theory X in the question is correct.